THE DRILL SERGEANT: Brazil-focused gold exploration play Crusader Resources has increased the JORC compliant Mineral Resource estimate for its Borborema gold project in north east Brazil.

The estimate has been increased to 44.65 million tonnes at 1.30 grams per tonne for 1.86 million ounces of gold using a 0.5 g/t cut off.

The new figures are a substantial change from the company’s November 2010 Mineral Resource estimate of 15.39 million tonnes at 1.70g/t for 0.84 million ounces.

The new Mineral Resource has been estimated to approximately 215m metres below surface, a depth Crusader considers potentially realistic for open pit mining.

The company said in its announcement the new Mineral Resource remains open in all directions and is limited only by drilling.

“The Borborema project is showing all the hallmarks of a company-making gold deposit,” Crusader Resources managing director Rob Smakman said.

“The new estimate of 44.64 million tonnes at 1.30 grams per tonne includes the slightly lower grade northern and southern zones.

“The overall grade reduction is more than compensated for by the increase in ounces and tonnes.

“With recoveries estimated at 95%, existing comprehensive infrastructure and the potential to continue growing the resource, we will focus on continuing to fast track the project in the coming months.”

The new resource includes results from 13,667 metres of drilling, consisting 144 RC and 34 diamond holes, undertaken by Crusader between September 2010 and March 2011 as well as 10,528m from 75 historical diamond holes.

The more recent drilling, carried out since March this year, has targeted the areas where Inferred Resources have been defined with the aim of converting a portion of these into the Indicated Resource category.

Crusader is currently planning for an expanded drilling program, the results from which it will incorporate in a further resource update timed to coincide with the presentation of a prefeasibility report.

“Due to timing constraints, it is expected that further drill rigs will be mobilised to complete the program,” the company said.

“This new program will target the higher grade areas in the central zone of the project as well as several new exploration target areas.”

 

Three BHP Billiton staff members are about to call the Shenton Park Dogs’ Refuge in Western Australia home.

The three BHP staffers won’t exactly be taking up residential status at the Refuge but they will be central to an important fundraising campaign.

The fundraising three-some – James Pregnell, Gabriel Gnavi and Jeremy Thornett – are especially well suited to spearhead the major fundraiser because any funds they raise as individuals will be matched by their employer under its Matched Giving program, up to a maximum of $50,000 each.

The Dogs’ Refuge Home in Shenton Park is now in the 76th year of operation and it is hoping to raise some $300,000 to put towards replacing an ageing kennel block, which was built in the 1930’s.

The 2011 30 for 30 Challenge will see the trio of BHP Billiton Iron Ore employees take the lead in a major fundraising challenge which will see them walk 30 of the Refuge’s dogs for 30 minutes each, and for a total distance of 30 kilometres on Saturday 25 June. 

“The Dogs’ Refuge Home rescues hundreds of abandoned dogs every year and I’m happy to help what is a very worthwhile cause,” committed dog lover James, the spokesperson for the group who has participated in two previous fundraisers for the refuge, said.

“As a BHP Billiton Iron Ore employee, any money I raise is matched dollar for dollar under the company’s Matched Giving program, and so all donations from the community will literally be doubled, up to a total of $50,000.

“The same applies to my colleagues Gabriel and Jeremy too, so we are appealing to members of the local community to make this the most successful fundraising effort in the Home’s history by making a donation and helping us to raise much needed funds for the Home.

“All donations over $2 are fully tax deductible so it’s a fantastic time to support the refuge with the end of the tax year looming.”

Karen Rhodes, President of the refuge, says the Home is appealing for anyone who has ever re-homed a dog from the refuge to make a donation to the campaign.

“This is our biggest fundraiser of the year and I’d urge dog lovers throughout Perth and especially the many thousands of dog lovers who have rescued a dog from us in the past, to support the BHP Billiton Iron Ore fundraising team,” she says.

“If this amazing trio of dog lovers could raise $50,000 each, the money raised would go a huge way towards meeting the annual shortfall we must raise each year to survive, and we’d also be able to put some funds aside towards building a new set of kennels to rescue many more dogs and puppies from an otherwise uncertain fate.

“Unfortunately we don’t receive any government funding, so we are very reliant on the community to support our rescue work by making a donation, and we are incredibly grateful for any amount that local dog lovers are able to donate.”

The BHP Billiton Iron Ore trio will begin walking the first of the 30 refuge dogs at 9am on the day and will return to the refuge every 30 minutes for another dog.  Members of the community are welcome at the refuge on the day, both to offer their support and to donate.

The Dogs’ Refuge Home is a registered charity that receives no government funding and relies totally on community support to fund its operations.  The Refuge has a pro-life policy and does not euthanase any healthy, re-homable animal in its care.    

To find out how you can help James, Gabriel and Jeremy in their fundraising challenge call the Dogs’ Refuge Home on (08) 9381 8166 or simply click on the following link.

 http://www.dogshome.org.au/30for30/

 

THE BOURSE WHISPERER: Renewable energy wind famers Infigen Energy announced financial close under the Woodlawn Wind Farm project finance facility and that it has successfully imported electricity to the grid as part of the wind farm’s pre-commissioning testing procedures.

In December 2010 Infigen signed a project finance facility agreement with Westpac for the 48.3 Mega Watt Woodlawn Wind Farm.

All conditions of the loan have now been satisfied and first draw down under the facility has occurred. The facility limit at financial close is $55 million.

Infigen achieved a milestone last week by successfully exporting electricity generated from the first of the 23 Suzlon 2.1 MW wind turbines to the grid.

“On completion Woodlawn Wind Farm will provide enough renewable energy annually to power approximately 23,000 homes and assist in meeting New South Wales’ growing electricity demand,” Infigen said in an announcement.

“The commissioning phase for the wind farm will continue into the second half of the year.”

The company said the Woodlawn project has created more than 150 direct jobs during construction and many more indirect jobs including the fabrication in Australia of towers, buildings, switchrooms and electrical equipment.

Infigen has provided on-site apprentices with valuable work experience and the development has also benefited the local community through increased economic activity.

“Infigen’s Woodlawn Wind Farm will be an important addition to our Australian business, located in an area with a good wind resource, an excellent connection to the grid and a supportive local community,” Infigen Energy managing director Miles George said in an announcement.

“Furthermore, the wind farm will aid Australia’s transition to a low carbon economy and contribute to Australia’s commitment to reduce greenhouse gas emissions.

“The project remains on time for completion by the end of 2011.”

Infigen also announced it has agreed to sell its portfolio of German wind energy assets with an installed capacity of 128.7 MW to a European based renewable energy fund for an enterprise value of €154.6 million.

Settlement of the sale is subject to receipt of German cartel authority approval, which may take up to 30 days, with completion to occur thereafter.

The company has earmarked the net sale proceeds to be applied to repaying debt under its global debt facilities.

“The sale of our German assets will achieve a fair value for securityholders and will represent an important step in improving our capital structure,” George said.

 

THE BOURSE WHISPERER: Surfers Paradise-based Monteray Mining Group has stepped outside its Western Australian focus by entering into a binding acquisition agreement to acquire a package of three gold licenses in Burkina Faso.

The licences are subject to the grant of permit applications covering 416 square kilometres of highly prospective ground in central western Burkina Faso, West Africa, covering the western extremity of the Houndé greenstone belt abutting the Taoudéni Basin.

The agreement allows Monteray to acquire Vema Resources, which has made an application for the licenses through a Burkinabe nominee entity.

Completion of the deal is subject to due diligence by Monteray, the Licences being granted to Vema and the approval of Monteray’s shareholders.

Monteray said in an announcement that it believes the licenses offer the company a significant opportunity to build its gold exploration portfolio as no systematic exploration has been undertaken on the area covered by Vema’s licenses.

“The company’s confidence is partly underpinned by the exploration success already recorded in the region, which includes the Mana Mine operated by Mana Minerals SA, a subsidiary of (TSX-listed) SEMAFO,” the company said.

“Mana, which is located approximately 45 kilometres south-south-west of the Vema applications, has reported Resources and Reserves of 3.28 million ounces and is currently producing at the rate of 180,000 ounces a year.”

Monteray Mining Group director John Hannaford said the licenses offered the company substantial upside and leverage.

“This is an attractive opportunity for a small tightly held company, to gain exposure to a large area of untested ground in such a high quality exploration location,” Hannaford said in an announcement.

Hannaford went on to say Monteray expected the acquisition to be the next stage in establishing a quality portfolio of gold projects in highly prospective areas.

The Agreement to acquire Vema provides for:

– A 45-day exclusivity period to conduct due diligence enquiries; and

– Consideration of 
    – $80,000 cash; 
    – 2.85 million Monteray shares; 
    – One million Monteray options exercisable at 30 cents within three years; 
    – One million Monteray options exercisable at 40 cents within four years; 
    – One million performance shares convertible to ordinary shares upon Monteray achieving a JORC Indicated Resource of greater than 500,000 ounces of gold of greater than 1.5 grams per tonne gold; and
    – One million performance shares convertible to ordinary shares upon Monteray achieving a JORC Indicated Resource of greater than 1,000,000 ounces of gold of greater than 1.5 grams per tonne gold.

 

THE DRILL SERGEANT: Base metals mining and exploration company Perilya has announced a new mineral resource estimate for the North Moolooloo high grade zinc prospect.

The new resource estimate is located in the Northern region of the North Moolooloo exploration project in the Flinders region in South Australia.

Perilya discovered the North Moolooloo deposit during a 94 hole drill program undertaken between late 2009 to April 2011.

The drilling totalled 13,068 metres, including 48 diamond drill holes and 46 reverse circulation (RC) drill holes.

The new Indicated Mineral Resource estimate, at a 10% zinc cut-off grade, totals 214,000 tonnes at 34.4 per cent zinc for a contained 73,530 tonnes of zinc metal.

“This is an exciting discovery as the deposit represents one of the highest grade deposits discovered in area to date and extends from near surface to a depth of approximately 150 metres,” Perilya managing director Paul Arndt said in an announcement.

“North Moolooloo is the second significant zinc silicate discovery by the company in the Flinders Ranges – the first being the Reliance discovery in 2001 – and follows the company’s highly successful open pit Beltana development, also in the Flinders region.

“The exciting thing with North Moolooloo is that preliminary work indicates that the ground conditions are very similar to the Beltana project giving us a higher degree of confidence around the potential for an economic open pit mining operation.

“It is also important to note that with the support of the company’s 52% shareholder, Zhongjin Lingnan, Perilya was able to gain vastly improved terms for the sale of its zinc silicate DSO from the Beltana Project into the Chinese market and the company is confident that with Zhongjin Lingnan’s support we will be able to maintain that competitive advantage into the Chinese market.

“In light of these results, the company will carry out a scoping study into the potential mining of this resource, whilst continuing to explore and seek to identify further resources in the Flinders region.”

Perilya has commissioned a development study for the purpose of enabling it to make a development decision on the North Moolooloo prospect.

The principal aim of the development study will be to consider the economic feasibility of an open pit mining operation.

The study will include:
– Evaluation of open pit mine design options;
– Where appropriate metallurgical test work;
– Assessment of bulk direct shipment ore transport and logistics options;
– Identification of preferred site layout and facility locations;
– Assessment and recommendation of transport and water supply arrangements;
– Advancement of environmental baseline monitoring in support of an environmental impact statement (EIS), and
– Discussions with local stakeholders.

The North Moolooloo prospect lies on exploration licence, which is held under a joint venture arrangement between Perilya and Australian Coloured Oxides.

Perilya currently has a 70% interest in the joint venture and has the right to increase its interest to 85% subject to completion of a successful feasibility study.